MEXICO CITY, Dec 11 (Reuters) - Mexico's central bank has to consider the situation in the country as well as what the U.S. Federal Reserve does when making its next interest rate decision, Finance Minister Jose Antonio Gonzalez Anaya said on Monday.
After reaching a 16-year-high earlier this year, annual inflation in Mexico has proved harder to tame than the central bank anticipated, and market expectations have increased that the bank will raise its benchmark rate later this week.
Asked whether his ministry would prefer the Mexican central bank not to raise rates, Gonzalez said he had "great respect" for it and would be watching what decision the U.S. Federal Reserve takes this month before its Mexican counterpart acts.
"The markets are obviously factoring in that there will be a (Fed) interest rate increase of 25 basis points this week. We'll have to see. Normally, this (rate move) is mirrored. But one also has to take the conditions of the country into account," Gonzalez said.